3 Issues That Drive Up Energy Costs in Commercial Buildings

Most commercial buildings consume significantly more energy than their operators account for. After analyzing over 200 connected buildings across corporate portfolios, we identified the same operational problems recurring consistently, often responsible for 30% or more of a building's total energy consumption.

What makes these issues particularly interesting is that none of them require major retrofits to resolve. They are operational and remain undetected, largely because real estate teams lack the capacity to identify them in their day-to-day hassle.

Spaces Operating at Full Capacity Outside Working Hours

This is the most prevalent issue we encounter, and among the most consequential. HVAC systems and lighting remain scheduled to activate hours before tenants even arrive and continue operating long after they depart.

In one portfolio we analyzed, HVAC and lighting were programmed to start at 6am, despite employees not arriving until after 8am. The reason was logical: prepare the space to ensure occupant comfort upon arrival. However, without calibrating schedules to reflect actual occupancy patterns, those systems operated unnecessarily for two or more hours every day. Multiple that across an entire building, and then across an entire portfolio, the resulting waste is substantial.

Research from the Carbon Trust indicates that buildings can waste 10–30% of their energy through inefficient scheduling and poor occupancy alignment. ‍

Simultaneous Heating and Cooling

It may seem unlikely, but it occurs with significant frequency: heating and cooling systems operating against each other, sometimes within the same zone.

We identified one building where both systems were running at the same time on a mild day with outdoor temperatures around 26°C. The system had been configured to maintain a precise temperature with virtually no deadband. When the room temperature dropped slightly below the setpoint, heating kicked in. When it rose slightly above, cooling was activated. The two systems spent the entire day working against one another. On top of that, the energy-saving mode that should have prevented this wasn't functioning, allowing equipment to run unchecked.

This type of issue typically represents 10 to 20 percent in recoverable energy savings.

Malfunctioning Equipment That Goes Undetected

Modern building management systems send commands to thousands of devices: valves, actuators, lighting fixtures, blinds. Over time, these components degrade or fail. The BMS, however, continues reporting normal status even when physical equipment has stopped responding.

In one building we assessed, valves were not adjusting to temperature setpoints during unoccupied hours, and certain units were cycling between heating and cooling on their own. In corridor areas, lighting was registered as dimmable within the system despite having no actual dimming capability. In a separate building, lights failed to turn on entirely when commanded remotely through the BMS. These undetected failures increase energy consumption and create comfort complaints that prove difficult to diagnose through standard methods.

Fixing equipment failures like these can recover approximately 15 percent in energy savings.

Why These Problems Persist

These problems are not technically difficult to resolve once identified. The core challenge is visibility.

Most facility teams operate with limited resources, responding to occupant complaints and keeping systems running day to day. They don't have the capacity to dig through BMS data looking for inefficiencies. And even where buildings collect extensive operational data, that information frequently sits unused. Temperature readings, occupancy data, energy consumption metrics are all available, but without the time or expertise to turn it into action.

The result is buildings that appear to be functioning normally while quietly wasting energy in the background.

Recommended Next Steps

If these issues are present in your portfolio, they are not unusual. They exist in the majority of commercial buildings we assess. Importantly, addressing them does not require significant capital investment. These are operational problems with operational solutions, and the financial returns can be significant.

Download our guide for step-by-step instructions on how to diagnose and resolve each of these issues with your teams.

Frequently Asked Questions About Commercial Building Energy Waste

1. How much energy do commercial buildings typically waste?

Based on our analysis of over 200 buildings, operational inefficiencies commonly account for 20–30% of total energy consumption. This waste stems primarily from poor scheduling, equipment malfunctions, and system conflicts.

2. Can building energy costs be reduced without a major retrofit?

Yes. Operational improvements, including HVAC schedule optimization, eliminating simultaneous heating and cooling, and fixing malfunctioning equipment, can reduce energy consumption by 10–30% without capital investment.

3. How is energy waste identified in a commercial building?

The most effective approach combines BMS data analysis with physical inspections. Key indicators include after-hours consumption patterns, temperature control conflicts, and gaps between system commands and actual equipment behavior.

4. What is the most immediate way to reduce commercial building energy costs?

HVAC scheduling optimization. Aligning system operation with actual occupancy patterns typically delivers the quickest return with minimal effort, often reducing energy consumption by 10–30% within the first few months.

5. Why doesn't my BMS identify these energy waste problems?

BMS platforms report on commands sent, not necessarily on equipment performance. A BMS may show a valve adjusting to 50% open, but if the valve is stuck, the physical system won't respond. This creates a persistent gap between what the system reports and what's actually happening.

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